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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (5485)	4/10/2006 9:26:28 PM
From: energyplay	Read Replies (2) \| Respond to of 219578

Re: Gold prices - A price of about 3,000 per ounce would every US paper dollar is backe 100% by gold. Back in 1980, that number was about $800, which is where gold peaked. We might get an overshoot of as much as 50%, to maybe $4,500 or the next round number of $5,000. That price could be around for a very short time. If every paper dollar is 100% backed, all the additional debt should matching assets (some of assets will have appreciated, some will be disapated). So there would not be much need to use gold to pay off the 9 Trillion Federal debt. So I don't expect the $36,000 fits in any sceanario with a probability of over 1 %. I would not want to be recieving some tiny amount of gold for Treasury bonds at over $ 10,000. By the way, if you think US economic primacy is an issue now, it would be even greater after 9 Trillion in debt goes away in exchange for yellow metal. That would mean the end of over 220 Billion in interest payments on that debt. Then about 1-2 trillion in new debt could duplicate the interstate highway system, additional infrastructure for water, power, airports, etc, and fund almost every DARPA fantasy project. All that, and continue to spend 300 Billion on military people and hardware. That is assuimg the Iraq was winds down - if that continued at over 150 billion a year, that would be tough to afford.

To: TobagoJack who wrote (5485)	4/11/2006 7:13:16 AM
From: critical_mass	Read Replies (3) \| Respond to of 219578

I visited the gold dealer today and went through the routine. The dealer had some interesting information: 1. Krugerrands are the most popular gold coin and maple leafs are the most popular silver coin. Gold bars are popular also. 2. Value added tax applies to Silver at a reduced rate and Platinum at the full rate for both coins and bars. 3. Business has been steady since May, 2005 and although gold's flirtation with $600 has been interesting, the last few weeks has not seen a huge upsurge in business. 4. There is a new "Philharmonic" series of gold coins from Austria that is apparently very popular with the Japanese. According to this dealer, Austrian coin dealer are completely sold out due to huge Japanese demand. (Do anyone know about these coins?) 5. The major banks have mostly exited the gold coin business in this part of Germany. Apparently, the margins and demand are insufficient to make the trade profitable. It would not surprise me to see a pullback in the price of physical gold, but I plan to hang on for more than a year.